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June 10.2025

2 Minutes Read

Twiga Foods' Halting Nairobi Operations: Strategic Shift in Distribution Approach

Twiga Foods halts Nairobi operations with workers sorting bananas in warehouse.

Twiga Foods Announces a Strategic Pause in Nairobi Operations

In an unexpected turn for one of Kenya’s leading e-commerce startups, Twiga Foods has announced a temporary halt to its operations in Nairobi, citing a necessary restructuring phase. This pause, expected to last two months, is referred to by the company as a critical step in their transition towards a more data-driven and efficient distribution model.

Background on Twiga’s Shift to an Asset-Light Model

The decision comes amid mounting pressure from investors and market dynamics, pushing Twiga to move away from its formerly capital-intensive supply chain approach. Having raised over $180 million, Twiga initially believed complete control of the food distribution chain would bolster its competitive position. This strategy included managing logistics and inventory directly, a move now deemed inefficient. Recent comments from former employees highlight frustrations with this strategy, stating, "We were burning money trying to do everything..." This sentiment underscores a growing recognition of the need for operational realignment toward a more asset-light strategy.

Strategic Considerations for the New Distribution Hub

As Twiga explores new sites for its distribution hub, options include areas like Baba Dogo and Mombasa Road, positions strategically selected to enhance efficiency and proximity to Nairobi's market. The planned shift aligns with industry best practices, which favor decentralized distribution networks that can effectively manage local supply and demand.

Future Implications for Kenya’s Food Distribution Landscape

The repercussions of this operational pause could resonate throughout the B2B food distribution sector in Kenya. Twiga’s challenges in the logistics and supply chain management spaces may serve as cautionary tales for similar startups aiming for scale. By leveraging technology to become a more data-centric operation, Twiga aims to conquer the tangled web of transportation costs and delivery efficiencies, aiming ultimately to serve the vast number of retailers more effectively.

Need for Adaptive Strategies in the Face of Adversity

This latest development at Twiga illustrates a broader trend among startups in the region adopting adaptive strategies to stay relevant. As consumer preferences shift and economic realities dictate the terms of engagement, the ability to pivot becomes crucial. Twiga’s realignment may offer valuable lessons on balancing growth ambitions with operational sustainability.

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Twiga Foods' Halting Nairobi Operations: Strategic Shift in Distribution Approach

Twiga Foods Announces a Strategic Pause in Nairobi Operations

Background on Twiga’s Shift to an Asset-Light Model

Strategic Considerations for the New Distribution Hub

Future Implications for Kenya’s Food Distribution Landscape

Need for Adaptive Strategies in the Face of Adversity

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